Frequently Asked Questions

There are many reasons why people want to sell their life insurance policies. Some of the more common reasons to sell a life insurance policy include:

• The premiums are no longer affordable.
• The beneficiary is deceased or the policyholder no longer has a need for the policy.
• Children are independent.
• The policyholder holds multiple life insurance policies and wishes to sell one or more.
• Funds are needed to pay for unexpected medical expenses.
• To replace an individual policy with a more affordable and efficient survivorship policy, a long-term care policy or to obtain funds for long-term care.
• To upgrade to a more modern, efficient policy that better serves their need.
• Changes in the policyholder’s estate eliminate the need for the policy.
• A key-person policy (designed to protect a company from the financial loss of an executive) is no longer necessary either because the company has closed or the individual is no longer integral to the business’ success.

Regardless of individual circumstances, anyone considering a life settlement should first discuss it with his or her life insurance, financial and legal advisors. We are available to assist you or your advisors with any questions.

It is estimated that 20% of life insurance policies owned by individuals age 65 and over have a fair market value in excess of their cash surrender value [Source: Viatical Settlements - The Emerging Secondary Market for Life Insurance Policies, 1999, Conning Insurance Research & Publications]. Generally, candidates for life settlements are:

• 65 years of age or older
• Own a policy with a face value of $100,000 or more
• Have owned that policy for more than two years

In addition to life settlements, a second type of transaction called a viatical settlement may be appropriate under certain circumstances. Viatical settlements are for policyholders of any age who are seriously ill. For more information on settlements, give Habersham Funding, LLC ("Habersham Funding") a call at 404-233-8275 or 888-874-2402 to speak with a case manager about your individual circumstances.

The purchase price of a life insurance policy is based on a number of variables including the age and health status of the policyholder, the face value and type of insurance, and the amount of premium. For a confidential evaluation of your policy and a preliminary market assessment, contact Habersham Funding at 404-233-8275 or 888-874-2402 to speak with a case manager.

Most types of individual life insurance policies (and many group policies) qualify for a life settlement as long as they are at least $100,000 in face value and are at least two years old. Habersham Funding can work with virtually every policy type including term, whole, universal, variable, group or joint survivorship. Policies may be owned individually, or through corporations, foundations, trusts, non-profit organizations or businesses. In some states, under certain circumstances, a policy less than two years may qualify for settlement.

The first step is to talk with a Habersham Funding case manager or your insurance, financial and legal advisors to determine if a life settlement is an option for you. If you decide to explore the option further, you will need to complete a life settlement application. There is no need for a medical examination. Completing an application does not obligate you to complete the transaction, and there is no application fee.

No. However, you will be asked various questions about your medical status and you will be asked to sign a release allowing us to review your medical records.

Habersham Funding can work with virtually every policy type including term, whole, universal, variable, group or joint survivorship. Policies may be owned individually, or through a corporation, foundation, trust, non-profit organization or business.

Life settlements often carry tax implications (possibly both ordinary income and capital gains). Some viatical settlements may be eligible for tax-free treatment. Speak with your legal and financial advisors for a thorough analysis before making any life settlement decision. Although Habersham Funding does not provide tax advice, our team is available to help your advisors better understand the process and its implicaitons. Let us know how we can help.